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Hong Kong, China Stocks to Get Fed Boost

The Fed's stimulative measuresare good for stock markets, especially in Hong Kong as it is seen as the gateway to investing in China, said Peter Lai, director at DBS Vickers Securities.

"This is good for the stock market, no doubt because it is being driven by liquidity....I believe our market will still go up," Lai told CNBC.

Goldman Sachs on Wednesday raised its 12-month target for the Hang Seng to 29,000.

Lai is expecting the Hang Seng to test 25,000 this month with a support level at 22,500.

Hong Kong's benchmark index climbed to a 28-month on Thursday, driven by property counters on expectations domestic interest rates would stay low for an extended period, after the Fed maintained key rates near zero.

Hot Sectors to Watch

"I prefer property stocks (to physical property) because it is easy for the investor to unload it," Lai said.

Sino Land rose 6.3 percent, New World Development advanced 5.6 percent and Cheung Kong rose 2.3 percent.

Lai noted that funds appeared to be chasing laggards in the market, like those in the transportation, shipping and banking sectors.

He also favors farming, pharmaceuticals, alternative energy and consumer-focused sectors in China.

The Hang Seng Index has risen 11 percent so far this year.